Governments Investing in Ontario’s Dairy Processing Sector
January 15, 2025
70 dairy processing businesses will receive funding to increase productivity and modernize food safety capabilities
The governments of Canada and Ontario are investing up to $7.18 million through the Sustainable Canadian Agricultural Partnership (Sustainable CAP) in 70 projects across the province to enhance and modernize dairy processing capacity and food safety. The funding from this initiative, which is cost-shared by the dairy sector, is expected to generate approximately $22 million in total capital investments, while reinforcing the supply of safe, high-quality Ontario milk on store shelves.
The Dairy Processing Modernization Initiative is over 90 per cent subscribed and still accepting applications from cow, goat, sheep and water buffalo milk processors. Successful applicants can receive up to $200,000 in cost-shared funding to enhance processing efficiency and food safety in their facilities. The funding can be used to help cover the costs of new or refurbished equipment, one-time training and more.
“There’s no doubt that our dairy processors work hard to ensure Canadians can enjoy their top-quality products” said the Honourable Lawrence MacAulay, federal Minister of Agriculture and Agri-Food. “With funding from the Sustainable Canadian Agricultural Partnership, this initiative is helping processors make important updates to their facilities so they can meet the growing demand for their products.”
“Ontario’s dairy processors have shown remarkable growth over the last several years and continue to produce safe, high-quality dairy products for domestic and international consumers,” said Rob Flack, Minister of Agriculture, Food and Agribusiness. “The success of the Dairy Processing Modernization Initiative underscores the health and vitality of Ontario’s growing dairy industry, and its ability to rapidly seize opportunities to modernize and increase processing capacity and food safety.”
Examples of projects include:
- Four All Ice Cream in Waterloo receiving up to $200,000 for a walk-in cooler with blast freezer/refrigeration capabilities, a pasteurizer with accessories, and a plate-heat exchanger to increase productivity and meet demand.
- Max and Lion Production in Peel Region receiving up to $119,692 to increase production capacity, improve product quality, reduce waste, and improve monitoring and traceability with a liquid filler machine, a high-pressure homogenizer for kefir production, and a new metal detector.
- Ontario Water Buffalo Co. in Hastings County receiving up to $53,925 to increase production and improve food safety through the acquisition of a batch freezer, heat combination machine, and a pasteurizer.
- Sargent Family Dairy in Durham Region receiving up to $40,609 to improve efficiency and reduce manual strain through the purchase and installation of a mechanical curd mill and a cream separator.
Sustainable CAP is a 5-year, $3.5-billion investment by federal, provincial and territorial governments to strengthen competitiveness, innovation, and resiliency of Canada’s agriculture, agri‐food and agri‐based products sector. This includes $1 billion in federal programs and activities and a $2.5-billion commitment cost-shared 60% federally and 40% provincially/territorially for programs designed and delivered by provinces and territories.
Quick Facts
- There are 171 licensed cow and goat dairy processors, plus additional sheep and buffalo dairy processors in Ontario.
- Ontario’s agri-food sector employs over 871,000 people, representing one in nine of all jobs in the province. The sector generated almost $51 billion of provincial GDP in 2023.
- Building productivity through new innovations, technologies and efficiencies for the agri-food industry was a top priority set for Sustainable CAP by the federal-provincial-territorial agricultural ministers in The Guelph Statement.
- The Grow Ontario Strategy is the government’s plan to strengthen Ontario’s food supply chains and food production through research and the adoption of innovative technologies and practices for long-term competitiveness.
Quotes
“The Dairy Processing Modernization Initiative is supporting Ontario dairies to grow and meet the increasing demand for dairy products by helping to modernize their facilities and improve productivity. The Ontario government’s commitment to grow this important sector is much appreciated and will help to ensure that it continues to play a pivotal and dynamic role in Ontario’s agri-food industry.”
– Christina Lewis
President, Ontario Dairy Council
Related Story
Governments Investing up to $8 Million in Ontario’s Dairy Processing Sector
The governments of Canada and Ontario are investing up to $8 million, through the Sustainable Canadian Agricultural Partnership (Sustainable CAP), to create or increase processing efficiencies and enhance food safety in the province’s dairy processing sector.
